CFOs traditionally come in two flavours. There’s the strategic CFO and the operational CFO. Don’t choose one over the other!
An operational CFO is a master of the big picture, synthesising current data from functional departments with financial data to optimise a company’s performance. The strategic CFO gazes more intently into the future, devising several-year roadmaps to map the firm’s ongoing vision.
Companies need someone with expertise in both of these areas to succeed. Here are some of the benefits you can expect from operational and strategic finance leadership:
1. An twin-tracked CFO aligns the company’s finances with its goals
A CFO of this pedigree owns the operating financial model for the business, and thus makes financial decisions and creates processes aligned with the company’s overall goals – all while working closely with other executives.
This alignment is critical for success because it guarantees that resources are appropriately allocated, especially to essential projects. In this way, they ensure that all departments work together to achieve a common goal.
2. They provide informed financial insights
An operational CFO provides your company with informed decisions that can steer your finances in the right direction. By doing so, the company avoids costly errors while guaranteeing that all resources are used wisely.
In other words, a twin-tracked CFO assesses the financial implications of investing in innovative technologies or expanding into new markets. Through this, the business can weigh the pros and cons of various options, helping make better decisions and produce better results.
3. They identify growth opportunities
The modern business environment can be very competitive and even cutthroat; as such, discovering new growth opportunities is crucial for long-term success. This is where a CFO with holistic vision comes in.
They can give a company a distinct viewpoint and a comprehensive understanding of the economic effects of various operational decisions. By taking advantage of this expertise, they can find potential growth opportunities that might otherwise go unnoticed.
For instance, a CFO may find new revenue streams through creative pricing strategies or recognise possible cost saving through more effective supply chain management. As they spot and pursue these opportunities, the company can stay ahead of the curve, boost revenue, and achieve long-term success.
4. CFOs can improve existing business processes
We all know efficient business processes can save the company time and resources. With the expertise of an operationally minded CFO, they can spot the areas needing improvement, leading to increased productivity and reduced cost.
In particular, they can look for ways to optimise logistics or reduce inventory costs to enhance supply chain management. They can also help to speed up billing procedures, saving time and money on invoice generation and payment collection.
They can also introduce automation. As they automate crucial routine processes, the business operates more smoothly, allowing resources to be more available for other projects and enhancing the bottom line.
CFOs with both an operational and strategic purview can help companies succeed
Overall, hiring a twin-tracked CFO is crucial to any company aiming to achieve its strategic goals and maximise its profits. As the company takes advantage of the CFO’s expertise, they can enjoy increased efficiency, better decision-making and advanced outcomes.